Total construction starts increased 4 percent in October to a seasonally adjusted annual rate of $1.2 trillion, according to Dodge Construction Network.
Nonresidential building starts grew 14 percent, nonbuilding starts increased 2 percent and residential building starts fell 3 percent. On a year-to-date basis through October, total construction starts were up 3 percent compared to the same time frame in 2023. Residential starts were up 7 percent in that time, nonresidential buildings rose 1 percent year-to-date and nonbuilding starts were up by less than one percent.
For the 12 months ending October 2024, total construction starts were up 1 percent year over year. Residential starts were up 6 percent and nonresidential and nonbuilding starts were each down 1 percent compared to October 2023.
“Construction starts have yet to see the impact of falling interest rates,” says Richard Branch chief economist at Dodge Construction Network. “Several more rate cuts will be needed to start moving construction projects through the planning process to start. Clarity, though, has improved now that the election is in the rearview mirror; however, developers may wait until the full scope of President-elect Trump’s legislative agenda comes into better focus.”
Nonbuilding
Nonbuilding construction rose 2 percent in October to a seasonally adjusted annual rate of $314 billion. Miscellaneous nonbuilding starts jumped 38 percent during the month, while highway and bridge starts moved 7 percent higher in October. Environmental public works starts fell 6 percent and utility/gas plants lost 25 percent in the month.
Year to date through October, total nonbuilding starts were flat compared to a year ago. Miscellaneous nonbuilding starts were up 19 percent in that time, environmental public works starts were 9 percent higher and highway and bridge starts improved by 5 percent. Utility/gas starts were down 21 percent through October.
For the 12 months ending October 2024, total nonbuilding starts were 1 percent lower than the 12 months ending October 2023. Miscellaneous nonbuilding starts were 19 percent higher during that period, environmental public works gained 6 percent and highway and bridge starts increased by 5 percent. Utility/gas starts were down 22 percent year over year, however.
The largest nonbuilding projects to break ground in October were a $1.6 billion natural gas pipeline and gathering system in and around Haynesville, Louisiana, the $1.3 billion Amtrack-Connecticut River bridge replacement in Old Saybrook, Connecticut, and the $1 billion Frederick Douglass Tunnel Southern Approach in Baltimore, Maryland.
Nonresidential
Nonresidential building starts climbed 14 percent in October to a seasonally adjusted annual rate of $466 million. Manufacturing starts rose 114 percent during the month due to the start of several large projects. Institutional starts rose 13 percent due to higher activity levels for education and transportation. Commercial starts fell 3 percent despite gains in hotel and parking starts.
On a year-to-date basis through October, total nonresidential starts were up 1 percent. Institutional starts were 16 percent higher, while commercial starts were down 1 percent and manufacturing starts were 33 percent lower year to date.
For the 12 months ending October 2024, nonresidential building starts were down 1 percent compared to the previous 12 months. Manufacturing starts were down 37 percent, commercial starts were down 4 percent in that time and institutional starts were 17 percent higher.
The largest nonresidential building projects to break ground in October were the $2.2 billion Henry Ford hospital tower in Detroit, Michigan, the $1.4 billion third phase of the LG Electric Battery plant expansion for Toyota vehicles in Holland, Michigan, and the $1.1 billion second phase of the Southwest Florida Airport expansion in Fort Meyers, Florida.
Residential
Residential building starts fell 3 percent in October to a seasonally adjusted annual rate of $373 billion. Single-family starts lost 4 percent, while multifamily starts were down 2 percent.
Through the first 10 months of the year, total residential starts were 7 percent higher. Single-family starts jumped 17 percent year to date and multifamily starts were down 9 percent in that time.
For the 12 months ending October 2024, residential starts were 6 percent higher than the previous 12 months. Single-family starts were 17 percent higher, while multifamily starts were 11 percent lower on a 12-month rolling sum basis.
The largest multifamily structures to break ground in October were the $384 million Frederick E. Samuel apartments in New York City, the $190 million Rivage Bal Harbour luxury condominiums in Bal Harbour, Florida, and the $190 million 1 K St. Southwest mixed-use building in Washington, D.C.